Lagos State has failed to maximize the gains of its status as an oil producing state if figures of the 13% oil derivation fund accruable to it since joining the league in 2016 are anything to go by.
The state’s Commissioner for Energy and Mineral Resources, Biodun Ogunleye, on Wednesday at the 2024 Ministerial Press Briefing to mark the second-term of Governor Babajide Sanwo-Olu at Alausa, Ikeja disclosed that the state has raked in N3.9bn as 13% oil derivation in about four years.
The 13 percent derivation fund comes from the federation revenue to oil-producing communities through the state governments as enshrined in section 162, sub-section 2 of the Nigerian constitution.
“Between 2018-2019, the state government received N131 million as part of oil derivation from the Federal Government. And between 2020-2021, the Lagos State Government received N3.78 billion” the Lagos State commissioner revealed.
However, according to data sourced by Ripples Nigeria, it showed that the N3.9bn received by the state in four years is paltry, when compared to what its contemporaries received in 2023 alone.
For example, according to the National Bureau of Statistics, Delta State in the pole position raked in ₦265.29bn in 2023 alone followed by Akwa Ibom with ₦182.4bn, Bayelsa, ₦140.28bn and Rivers, ₦139.98bn.
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Others are Edo with 27.37bn, Ondo, ₦25.37bn, Imo: ₦9.34bn, Anambra: ₦7.86bn and Abia with ₦4.18bn.
The commissioner attributed these poor earnings to challenges faced by the company managing its exploration.
According to him, the Yinka Folawiyo Petroleum Company Limited (YFP), a wholly-owned indigenous firm and operator of the OML 113 offshore Lagos, commenced the production of crude oil from the field.
“The owners of the assets have been having issues among themselves. And as long as they could not produce, there would be no money for Lagos.
“The state government is engaging them to ensure that they return to the field. And we hope that before the end of the year, they will find new technical partners and they can go back to production.”
By: Babajide Okeowo
The post Lagos as oil producing state makes N3.9bn in four years; Delta, Akwa Ibom rake in N265bn, N182bn in 2023 alone appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.
